Q3/2010 Interim report as of September 30, 2010

Transcription

1 Q3/2010 Interim report as of September 30, 2010

2 Overview of key figures Change in % Net fee and commission income EUR million 25,89 27,03-4,2 Net trading income EUR million 44,68 61,08-26,9 Administrative expenses EUR million -63,30-69,56-9,0 Net profit for the period EUR million 8,52 15,69-45,7 EPS EUR 0,19 0,35-45,7 CONSOLIDATED BALANCE SHEET Change in % Equity EUR million 178,24 177,56 0,4 Total assets EUR million 592,27 439,83 34,7 KEY BUSINESS FIGURES Change in % Employees ,2 Order books No ,2 SHARE PRICE OF BAADER BANK Change in % Opening price (4 January/2 January) EUR 3,27 2,22 47,3 Highest price EUR 3,83 2,22 72,5 Lowest price EUR 3,03 1,63 85,9 Closing price (30 September) EUR 3,05 2,80 8,9 Market capitalisation (30 September) EUR million 140,02 128,54 8,9 Share turnover (daily average) No ,6 2

3 Letter to shareholders The effects of the debt crisis in the PIIGS countries of Portugal, Ireland, Italy, Greece and Spain continued to ensure that the market environment for Baader Bank remained extremely difficult in the third quarter of This was exacerbated by the traditionally lower levels of stock market turnover in the summer months, with the result that Baader Bank s profit from operations declined to EUR 2.3 million in the third quarter (previous year: 10.1). Profit from ordinary activities also fell to EUR 2.3 million in the period under review (previous year: 9.6), while earnings after taxes decreased to EUR 1.1 million (previous year: 6.7). The Board of Directors considers the fact that Baader Bank managed to achieve a profit from operations of EUR 11.3 million for the period from January to September 2010 (previous year: 19.2) to be a success in light of the uncertain situation on the capital markets. The same applies to profit from ordinary activities in the amount of EUR 12.1 million (previous year: 20.1) and earnings after taxes of EUR 8.5 million (previous year: 15.7). This also reflects the impact of Baader Bank s variable salary model, which helped to reduce administrative expenses to EUR 63.3 million in the first three quarters of the year (previous year: 69.6). Baader Bank continued to develop its product range for institutional clients. Since 1 September, the Bank has offered Baader FX-Trader, a proprietary solution for professional foreign exchange trading that allows clients to make spot trades in the G10 currencies (except the rouble), the Singapore dollar and the Hong Kong dollar. Baader Bank also expanded its consulting activities for capital market measures. In the first nine months of 2010, it provided support for 16 transactions with a total volume of EUR 45.6 million, compared with EUR 36.2 million in the same period of the previous year. The Bank benefited from the slight upturn in the propensity of companies to seek refinancing on the capital markets, as well as the close relationship between Baader Bank and small and medium-sized issuers. Selected indices on a euro basis Change vs DAX 4.810, , , ,02 4,56% TecDax 508,31 817,58 734,48 781,47-4,42% SDAX 2.800, , , ,76 23,13% MDAX 5.601, , , ,03 16,80% REXP 357,99 375,62 394,19 398,49 6,09% DJ STOXX 50 P 2.447, , , ,90-7,36% DOW JONES INDUS. AVG 6.290, , , ,74 7,67% S&P ,38 785,56 840,92 837,89 6,66% NASDAQ , , , ,99 11,97% NIKKEI ,49 79,62 86,41 82,42 3,52% BRAZIL BOVESPA STOCK , , , ,50 9,58% MEXICO BOLSA 1.153, , , ,11 12,11% RUSSIAN RTS $ 452,89 995, , ,95 11,24% HANG SENG STOCK 1.330, , , ,48 9,42% Shanghai SE B 79,50 174,83 170,45 192,93 10,35% SENSEX (India) 142,05 258,70 310,89 327,70 26,67% BSE 100 (India) 73,45 136,92 165,84 173,53 26,74% MSM 30 (Oman) 9.972, , , ,80 7,24% Baader Bank continues to prepare its accounts in accordance with IFRS (International Financial Reporting Standards). However, this quarterly report is not an interim report under IAS 34. 3

4 Net assets Balance sheet as at 30 September 2010 ASSETS Change EUR thou. EUR thou. % 1. Cash reserve > Loans and advances to other banks ,0 3. Loans and advances to customers ,2 4. Allowance for losses on loans and advances ,1 5. Assets held for trading ,4 6. Available-for-sale financial instruments > Equity-accounted investments ,5 8. Property and equipment ,9 9. Intangible assets ,0 10. Goodwill ,0 11. Income tax assets ,0 12. Other assets ,0 13. Deferred tax assets ,1 Total assets ,7 LIABILITIES AND EQUITY Change EUR thou. EUR thou. % 1. Deposits from other banks ,0 2. Amounts due to customers ,4 3. Liabilities held for trading > Provisions ,1 5. Income tax liabilities ,2 6. Other liabilities ,1 7. Deferred tax liabilities ,1 8. Equity ,4 Total liabilities and equity ,7 Total assets increased significantly by 34.7% compared with year-end 2009, amounting to EUR 592,273 thousand as at 30 September This development was primarily due to the expansion of Baader Bank AG s financing activities. Non-current amounts due to customers rose as a result of taking up a further EUR 96,130 thousand in the form of Schuldschein note loans and term deposits. On the asset side of the balance sheet, liquidity is now increasingly invested in available-for-sale financial instruments. This also explains the increase in this balance sheet item. However, current amounts due to customers also rose. Accordingly, loans and advances to other banks nearly doubled. The decrease in the equity-accounted investments item is due in particular to sales of the fund units included there, while the rise in liabilities held for trading is due to the market situation. As at 30 September 2010, the Group s equity amounted to EUR 178,242 thousand (31 December 2009: EUR 177,562 thousand). This meant that the equity ratio was 30.1%. The change in equity is essentially due to the profit distribution of EUR 5,900 thousand, which was offset by comprehensive income for the first nine months of 2010 in the amount of EUR 5,846 thousand. 4

5 Earnings Income statement for the period from 1 January to 30 September Change INCOME STATEMENT EUR thou. EUR thou. % 1. Net interest income/expense > Allowance for losses on loans and advances ,5 3. Net interest income after allowance for losses > Net fee and commission income ,2 5. Net trading income ,8 6. Net income/expense from available-for-sale financial instruments 7. Net income/expense from equity-accounted >100.0 investments 8. Administrative expenses ,0 9. Profit/loss from operations ,2 10. Other income/expense ,0 11. Profit/loss from ordinary activities ,9 12. Income tax on profit from ,5 ordinary activities 13. Net profit for the period before minority ,0 interests 14. Minority interest in net profit ,7 15. Net profit for the period ,7 16. Accumulated income/loss brought forward ,2 from previous year 17 Consolidated net profit ,3 Statement of comprehensive income for the period from 1 January to 30 September STATEMENT OF COMPREHENSIVE INCOME EUR thou. EUR thou. EUR thou. 1. Consolidated net profit for the period before minority interests Other comprehensive income 2. Change to the reserve due to currency translation Remeasurement of available-for-sale financial assets Income tax on other comprehensive income Other comprehensive income Comprehensive income before minority interests Minority interests in comprehensive income Comprehensive income

6 Segment reporting for the period from 1 January to 30 September 2010 in EUR thou. Specialist activities and proprietary trading Agency / commission business Capital market services Financial portfolio manage-ment Other / consolidation Group Net interest income/expense Allowance for losses on loans and advances Net interest income/expense after allowance for losses on loans and advances Net fee and commission income Net trading income Net income/expense from available-forsale financial instruments Net income/expense from equityaccounted investments Net income/expense from financial operations Directly attributable administrative expenses Other operating income/expense Profit/loss after directly attributable income/expenses Indirectly attributable administrative expenses Profit/loss from ordinary activities Average number of employees during the period The traditionally lower levels of stock market turnover in the third quarter, which was characterised by particularly restrained trading activity among investors during the summer months of 2010, meant that Baader Bank AG s profit from operations declined to EUR 11,275 thousand in the first nine months (previous year: EUR 19,161 thousand). Net trading income thus decreased by 43.2% in the third quarter to EUR 13,272 thousand (previous year: EUR 23,365 thousand). On a nine-month basis, this item fell by 26.8%. By contrast, net fee and commission income declined by only 4.2% to EUR 25,894 thousand in the period under review after EUR 27,031 thousand in the previous year, while net interest income more than doubled to EUR 4,063 thousand. This development shows that interest- and commission-oriented banking business is assuming an increasingly important role at Baader Bank, although this is not yet enough to fully offset the downturn in individual components of its securities business at present. Nevertheless, Baader Bank is satisfied with achieving a profit from ordinary activities of EUR 12,105 thousand (previous year: EUR 20,149 thousand) in such an erratic and difficult market environment. The Bank generated earnings after taxes of EUR 8,869 thousand compared with EUR 16,129 thousand in the previous year. The comparatively lower level of tax expenses in the prior period is due to positive nonrecurring tax effects in the 2009 financial year. In the first nine months of the 2010 financial year, administrative expenses decreased by EUR 6,259 thousand or 9.0% year-on-year to EUR 63,305 thousand. Of this amount, EUR 4,846 thousand is attributable to staff costs and EUR 522 thousand to other administrative expenses. This highlights the extent to which staff costs vary in accordance with operating earnings due to Baader Bank s variable salary model. Depreciation of property and equipment and amortisation of intangible assets decreased by EUR 892 thousand year-on-year. As at 30 September 2010, the Group had a total of 367 employees (30 September 2009: 349). Basic earnings per share amounted to EUR 0.19 (previous year: EUR 0.35). 6

7 Financial position As at 30 September 2010, short-term loans and advances to other banks and available-for-sale negotiable securities of EUR 485,449 thousand were offset by current liabilities to other banks of EUR 176,762 thousand. This results in a net balance sheet liquidity surplus of EUR 308,687 thousand. The Group s liquidity was guaranteed at all times during the period under review. Outlook Regardless of the substantial improvement in the economy, Baader Bank is of the firm opinion that the debt crisis in several European countries will continue to influence the capital markets in the coming months and years. This will be exacerbated by the fact that the US Federal Reserve Bank is increasingly flooding the markets with money, thus creating the basis for new bubbles. As these measures are keeping interest rates on the bond markets low, new investment opportunities are being sought. This is one of the main reasons for the bullish equity markets, particularly in emerging economies, and the explosion in commodity prices, which brings with it the risk of inflation. With this in mind, Baader Bank expects the capital markets to remain difficult to predict over the coming months. Thanks to its broad-based positioning, however, the Bank believes that it is well prepared for these developments. Although Baader Bank is likely to have to cope with sustained uncertainty on the bond markets, it should also benefit from the robust performance of the equity markets. The rise in prices on the commodity markets is also expected to provide similar positive impetus. In order to expand Baader Bank s customer-oriented business, the Customers and Products unit, into a second strong pillar alongside securities trading, the Bank is in the process of implementing a new strategic step that will significantly strengthen the areas of capital market services and commission trading. At the same time, an internal research department will be established for the first time in order to provide sustainable support for these areas. The first steps in this gradual process were executed in August and October, and the teams of experienced capital market experts will be completed by 1 January This will create a complementary triad of capital market services, commission trading and research for which Mr. Nico Baader will have responsibility on the Bank s Board of Directors. The Bank sees these measures as a strategic quantum leap aimed at expanding and rounding off the customer groups in the areas concerned. This means that Baader Bank s capital market services will also be aimed at companies from the upper end of the small and medium-sized segment in future. The Bank is also seeking to increase the individual transaction volumes in commission trading with new and larger institutional clients than previously. In exchange trading, the reform of Frankfurt floor trading will affect Baader Bank s business there. Trading of shares is to be transferred from the Xontro trading and order routing platform to the internationally linked Xetra system. The extent to which Baader Bank AG can benefit from this step will depend to a large extent on how the pricing model on the stock exchange will be structured in future. Unterschleissheim, 17 November 2010 Baader Bank Aktiengesellschaft Board of Directors Uto Baader Nico Baader Dieter Brichmann Dieter Silmen 7

8 Baader Bank Aktiengesellschaft Weihenstephaner Str Unterschleissheim Tel: +49 (0) Fax +49 (0) info@baaderbank.de